FIGURE 1 Total Army FY15 Small Business Spend
USACE 33%
AMC 52%
NGB 7%
PEO STRI 1%
MEDCOM 3%
KEY
INSCOM – U.S. Army Intelligence and Security Command
MEDCOM – U.S. Army Medical Command NGB – National Guard Bureau
PEO STRI – Program Executive Of ce for Simulation, Training & Instrumentation
USACE – U.S. Army Corps of Engineers
USAMRAA – U.S. Army Medical Research Acquisition Activity
USAMRAA 3%
INSCOM 1%
• A move by the U.S. Small Business Administration (SBA) to include contracts performed overseas in deter- mining prime contract goals as of FY16, in accordance with the National Defense Authorization Act for Fiscal Year 2013. Trough FY15, the baseline included only contracts performed in the United States. Including contracts performed overseas would increase the base against which the percentage of small business awards is measured and would result in a lower percentage of awards to all small business socioeco- nomic programs, at least initially until opportunities increase for small busi- nesses to perform overseas.
A BIG CHUNK OF PIE
AMC awarded more than $9.2 billion in contract actions to small businesses in FY15, representing 52 percent of the Army total of $17.5 billion in 126,963 contract actions. (SOURCE: AMC OSBP)
while considering economic factors that may pose challenges to meeting the goals.
Tese factors include the economy; the command’s mission;
sequestration; the procurement
environment; budgetary constraints, such as
the inclusion of
contracts performed outside of the United States instead of just awards for stateside actions; requirements consolidation; stra- tegic sourcing initiatives to provide for standardization of contract awards across service categories; requirements not eli- gible for small business, such as the award of a major weapon system; and statutory and regulatory changes.
A number of recent legislative, regulatory and policy changes are having an impact on small businesses and OSBPs, including:
• Te Small Business Subcontracting Transparency Act (S. 2138), a bill being considered in Congress to improve the review and acceptance of subcontract- ing plans. Tis legislation resulted from challenges that small businesses expe- rienced with the federal procurement process and their role as subcontractors.
• Improving Small Business Innova- tive Research and Technologies Act (S. 2136), also pending in Congress, which would establish a pilot program aimed at increasing opportunities for small innovators in rural states to develop new technologies and com- mercialize them through the Small Business Innovation Research (SBIR) program.
• An SBA final rule, effective Oct. 14, 2015, implementing Section 825 of the National Defense Authorization Act for Fiscal Year 2015, which granted authority to award sole-source contracts to WOSBs in appropriate circum- stances. In sum, if a contracting officer, after conducting market research in an industry for which a WOSB set-aside is authorized, cannot identify two or more such businesses but identifies only one that can perform at a fair and reasonable price, a contract may be awarded on a sole-source basis with the proviso that the anticipated value of the contract,
including options, does not
exceed $6.5 million for manufacturing contracts and $4 million for all other contracts. Tis section also changed the deadline for SBA to conduct a study to determine the industries in which WOSBs are underrepresented to Jan. 2, 2016.
• “Inflation Adjustment of Acquisition- Related Tresholds” for FY16 (Federal Acquisition Regulation Case 2014- 022, dated July 2, 2015; see https://
acc.dau.mil/CommunityBrowser. aspx?id=734185).
ASC.ARMY.MIL 37
ACQUISITION
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